employer branding

Topics: Brand management, Human resource management, Brand Pages: 16 (4075 words) Published: October 8, 2013
A Study on
Employer Branding
“How to Attract Indian Talent?”

Employer Branding- How To Attract Indian Talent?


Employer–employee relationships have undergone a paradigm shift over the past few decades. The war for talent has meant companies are jostling for space in an increasingly crowded job market where skill is at a premium. A successful employer branding strategy can have a far reaching impact in increasing the number and quality of applicants. With companies like Infosys, TCS, Tata Steel, CEAT figuring prominently in establishing their brand as a best place for working and also attracting the best talents across the world, one can safely surmise that wooing talent is the new battle to be fought. This can happen only when there is a perception that their workplace is attractive. Infosys and the companies seek to do this by a strong learning culture and leadership development strategy, where each employee has a career roadmap to follow.

Figure I: Aspects of Employer Branding

The term "employer brand" was first publicly introduced to a management audience in 1990, and defined by Simon Barrow, chairman of People in Business, and Tim Ambler, Senior Fellow of London Business School, in the Journal of Brand Management in December 1996. This academic paper was the first published attempt to "test the application of brand management techniques to human resource management". Within this paper, Simon Barrow and Tim Ambler defined the employer brand as "the package of functional, economic and psychological benefits provided by employment, and identified with the employing company". By 2001, of 138 leading companies surveyed by the Conference Board in North America, 40% claimed to be actively engaged in some form of employer branding activity.  In 2003, an employer brand survey conducted by the Economist among a global panel of readers revealed a 61% level of awareness of the term "employer brand" among HR professionals and 41% among non-HR professionals. The first book on the subject was published in 2005, and the second in 2006.  In 2008, Jackie Orme, the Director General of the UK Chartered Institute of Personnel Directors confirmed the growing status of the discipline in her opening address to the CIPD annual conference, with the observation that: "When I started out in the profession, nobody talked about employer branding. Now it's absolutely integral to business strategy—resonating well beyond the doors of the HR department". Similar recognition of the growing importance of employer brand thinking and practice has also been recently in evidence in the USA, Australasia, Asia, and Europe, with the publication of numerous books on the subject.

Five reasons why employer branding is important:

Universum gives five reasons why employer branding should be a vital management tool for every organization and company today.

1. Shortage of skilled labour: with the emergence of China, Russia, India and Brazil as economic powers, and due to the aging population in the U.S., European Union and Japan, the competition for skilled workers has or will continue to increase. Adding to this trend, there is also a clear shift in students’ preferences moving from technical degrees to non-technical degrees. Companies or organizations that are perceived to be attractive employers will have an easier time to recruit top talent.

2. More with less: a mantra coined during this economic downturn, there is high pressure to cut costs and increase productivity, which has made the need to get the right people in the right jobs even more crucial. Employer branding results in more successful recruitment and retention of top talent. Moreover, by properly communicating the reality of the work environment, companies are more likely to attract talent that fits their organizational culture, thus increasing the number of people with the right skills in the correct positions.

3. Growth & profitability: hiring and...

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